KPMG has been accused of tone-deaf corporate behaviour after the head of its Tech and Data division announced his own promotion in an email to staff — around 200 of whom are about to lose their jobs before Christmas.
Paul Henninger, who leads KPMG's Tech and Data unit in the UK, told employees that his role was changing and that an interim boss would lead the division, reporting directly to him, to 'ensure a smooth transition and maintain continuity for our people and clients.' He added that there were no changes to reporting lines or business priorities, urging staff to 'remain focused on delivering for our clients and supporting each other.'
Henninger signed off by saying: 'Although my role is changing, I will remain closely connected to the Tech and Data team and I look forward to continuing to work with many of you. It has been a real privilege to lead the Tech and Data Super Service Line and I am proud of what we have achieved together.'
The email landed as around 200 people in the division's AI, Cyber, SAP and Testing teams face redundancy before Christmas. One KPMG insider told The Register: 'By pairing his executive promotion with staff redundancies, this email exemplifies KPMG's traditionally tone-deaf approach to vulnerable employees.' The insider added: 'Timing these layoffs just before the holidays, while simultaneously withholding hard earned bonuses and offering an insulting £100 to waive legal rights, demonstrates a severe erosion of corporate ethics.'
A KPMG spokesperson defended Henninger's move, telling The Register: 'Paul Henninger is a highly respected industry leader and has brought innovation, tech and AI to the heart of our consultancy services. Given the changing needs of clients, with innovation ever increasing in demand, it is natural that we would elevate our expertise in this area to lead our consulting business at this time.'
The episode comes against a backdrop of strong financial results for the firm. KPMG's UK and Swiss business increased revenue by 2 percent year-on-year to £3.6 billion in 2025, reporting profit before tax of £576 million, up 14 percent. Group chief executive Jonathan Holt said the firm had continued to invest in its people, citing more promotions and an 18 percent increase in colleague bonus spend across the group.
The contrast between the firm's rising profits, the executive promotion, and the pre-Christmas layoffs has fuelled anger among staff and drawn wider criticism of the Big Four consultancy's handling of the restructuring. The redundancies are concentrated in technology teams — the same area the firm says is seeing ever-increasing client demand — raising questions about the logic of the cuts.
KPMG has not said whether the redundancy terms will be revisited, and the interim leadership arrangement is expected to remain in place while the division transitions.